Hamsa Koya K.T. vs. Government Of Kerala

Held

The Court held that the GST was demanded on the license fee paid by the petitioner to the Corporation for taking the facilities, not on the charges collected by the petitioner from the public for using the toilets. The license fee is a supply of service under Section 7 (1A) of the GST Act and is not covered by the exemption for public convenience services.

Facts

The petitioner was granted a license by Kerala Transport Development Finance Corporation Ltd. to operate pay-and-use toilet facilities at a bus terminal. An agreement stipulated a license fee and 18% GST on this fee. The petitioner failed to deposit the GST amount, leading to a demand notice from the Corporation.

Key Issues

Whether the license fee paid for operating pay-and-use toilet facilities is exempt from GST, or if the exemption for 'services by way of public conveniences' only applies to the charges collected from the public for using the facilities.